The Acquisition of Ukrtelecom

Epic, a Vienna-based investment house, has agreed to acquire a 93 per cent stake in Ukraine’s state telephone company for just under EUR 1bn after rivals were excluded from the privatisation tender.

The government offer values Ukrtelecom at just EUR 7 million more than the starting price that was set in the privatisation tender last December. Domestic investment banks argue the government could have generated up to EUR 1.3bn for its cash-starved budget through a competitive sale.

Peter Goldscheider, Epic’s managing partner, told the Financial Times that his group “will accept” the government’s offer and hopes to close the acquisition of Ukrtelecom in March after talks with banks to finance the purchase.

Source: Financial Times, 13th of February